A highway at night

Regional economic analysis and modelling

EU regional policy is a broad investment policy in key strategic policy areas. It supports job creation, competitiveness, economic growth, improved quality of life and sustainable development. These investments support the delivery of the Europe 2020 strategy.

Regional policy is also the expression of the EU’s solidarity with less developed countries and regions, concentrating funds on the areas and sectors where they can make the most difference. Regional policy aims to reduce the significant economic, social and territorial disparities that still exist between Europe's regions. Leaving these disparities in place would undermine some of the cornerstones of the EU, including its large single market and its currency, the Euro.

The objective of the Regional Economic Modelling (REMO) action is to provide analytical support to EU policymaking by developing a regional model in close collaboration with the Commission’s Directorate-General for Regional and Urban Policy.


RHOMOLO is a general equilibrium model jointly developed by the Directorate General Joint Research Centre (JRC) and the Directorate General for Regional and Urban Policy of the European Commission (DG REGIO).  It is used to run policy simulations and provide model-based support to EU policymaking, particularly on cohesion policy. The regional holistic model (RHOMOLO) covers all Member States and all their regions at NUTS2 level (Nomenclature of Territorial Units for Statistics). The model integrates important economic and social dimensions and can be used for an ex-ante impact assessment of EU cohesion policy options, but also for an ex-post analysis of the contributions of EU policy to regional growth and employment. RHOMOLO is built for scenario analysis rather than forecasting.

For more information visit the Rhomolo model subsite

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